SAP announced €5.261 billion revenue in Q1 2018, showing a marginal drop in sales as compared with €5.285 billion in the same period last year as the software company faced more pressure from Salesforce and Oracle.
Cloud subscriptions and support revenue of SAP increased 18 percent to €1.070 billion in Q1 2018. Software licenses and support revenue of SAP decreased 4 percent to €3.281 billion. Cloud and software revenue of SAP increased 1 percent to €4.351 billion.
Germany-based business software major SAP said it was gaining ground on key competitors Salesforce and Oracle in the cloud and that its margin recovery was firmly on track, Reuters reported.
SAP said new cloud bookings grew 14 percent to €245 million.
Software revenue of SAP fell 10 percent to €625 million. New cloud and software license order entry grew by 10 percent in the first quarter.
SAP said it’s rapidly expanding cloud business together with solid growth in support revenue continued to drive the share of more predictable revenue.
SAP said the total cloud subscriptions & support revenue and software support revenue as a percentage of total revenue grew 2 percentage points to 71 percent in the first quarter and exceeded 70 percent for the first time.
The business software company said S/4HANA adoption grew to more than 8,300 customers, up 43 percent. SAP added approximately 400 additional customers. Swiss Post is one of the new customers of S/4HANA. MacMahon Holdings and Detecon International selected S/4HANA Cloud in the first quarter.
SAP’s customer experience solutions achieved triple digit growth in new cloud bookings. Jaguar Land Rover, Coca-Cola, and Unilever selected SAP’s customer experience solutions this quarter.
SAP SuccessFactors Employee Central, the core of SAP’s HCM offering, has more than 2,400 customers including CaixaBank, Reckitt Benckiser Group, HiPP, San Francisco Unified School District and Intesa Sanpaolo.
Airbus, DBS Informatik, and Thyssenkrupp among many others adopted SAP Leonardo solutions in the first quarter.
Revenue in the SAP Business Network segment rose 17 percent to €663 million at constant currencies. Migros and Ralph Lauren chose SAP’s Business Network Solutions in the first quarter.
Baburajan K
